Work has started on a £1m housing scheme in Didcot designed to cut heating and lighting bills for tenants.

The controversial development on the site of a former glove factory -- more recently a council depot -- provoked criticism from neighbours, who said the extra traffic would add to the dangers in an already busy road.

They said the entrance to the development, in Lydalls Road, was too close to Lydalls Nursery School, where there is congestion when parents drop off and collect children.

However, the social housing scheme -- for seven two-bedroom houses and four one-bedroom flats -- was approved by South Oxfordshire District Council. Soha housing has begun to demolish the old depot buildings.

Among the energy-saving technology incorporated in each property will be solar panels, which will provide up to 50 per cent of energy needs.

Any surplus electricity can be sold back to the National Grid, reducing bills even further.

Other features include recycling of waste water from baths and sinks. After treatment the water will be stored and used to flush lavatories.

All the homes will have low-energy heating and light systems and water butts to collect rainwater for use in outside taps. Soha spokesman Kris Crowther said: "These unique homes will provide affordable housing for local people.

"The properties will not only help the environment but allow our tenants significantly lower running costs."